[GIP-25] Remove Withdrawal Fee

Proposals
1

ETA: the week of November 15.
https://snapshot.org/#/gearbox.eth/proposal/0x9d3e9861d6dfdf9e9cf14c7a93ee25e15cee8c5409479d3349713fb7d513609a

Motivation

Remove the 1% withdrawal fee on the pools side.

Summary

The concept of a withdrawal fee was never supposed to stay for long, it was only there to prevent fluctuations during the first weeks of usage. Fluctuations refer to the fact when pools only have $2-4M and large withdrawals can shift borrow rates up-down too much. That was an inconvenience. Not anymore.

Screenshot 2022-10-26 at 09.38.48
Screenshot 2022-10-26 at 09.38.483738×2286 497 KB

While this is in no way sticky liquidity, everyone is entering pools under assumption that the fee won’t be there. Therefore, a few weeks into V2 full usage, withdrawal fee shall be removed fully. At that point, LPs can decide whether they want to stay for the organic APYs and the proper LM program — or leave.

This was never a sustainable revenue-making source for the protocol. The other two are:

That’s it. A very simple practical proposal.

1 Like
2

agree, it`s time :innocent:
What is the estimated time frame, 2-3 weeks? or specification of the exact date will be a little later

1 Like
3

You are right, should be specification. It can stay till mid November, but beyond that no need. Let’s say we vote for it soon and then the execution can take place on November 15?

1 Like
4

Yep, I think now it’s not critical. Just gives a little more idea of ​​the plans. So for now, we are focusing on November 15, and then we may adjust it.

1 Like
5

https://snapshot.org/#/gearbox.eth/proposal/0x9d3e9861d6dfdf9e9cf14c7a93ee25e15cee8c5409479d3349713fb7d513609a

6

Yes, that’s a great idea. If we believe in the project - why this commission then?

7

Done. All at 0% now. Sayonara withdrawal fees!